Legal Question in Business Law in Pennsylvania
Need help with buying out my LLC business partner
I started a small business with a friend of mine back in April 2008. We are registered LLC in the state of PA. I would like to know your advice on how to approach by business partner with a buy out. He lacks the determination, drive, and motivation to get this business off the ground and I can't sit back and pick up the slack any longer. Thank you for your time and I look forward to some much needed advice on this matter.
1 Answer from Attorneys
Re: Need help with buying out my LLC business partner
Much of your answer may be found in the operating agreement for your LLC, if you have one. That document (if drafted by a skilled practitioner) will hopefully have thought of this current scenario.
The next step may be to have a dinner/lunch meeting away from the office--somewhere in a relaxing environment where you can eventually talk about the direction of the LLC and the future plans of the other member. What would he do if he ever left? Then find out what it would take for him to leave.
Obviously this is a bit tersely worded--it would have to be tactfully structured or the conversation could have the opposite effect, it could end up really damaging the relationship between the two of you. At some point you will probably need to speak with an attorney who works with business matters so that they can either advise you how to approach the situation, or at least to help prepare some documents. There will be a host of issues to work through such as who gets to use the name of the company, noncompetition issues, etc.
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